Suppose that the economy is depicted by the following relationships (amounts are in $ billions) Total planned expenditures = C + 1 + G + (X-M) where C = $100 + 0.75(Y - T) G = $ 500 T = $ 500 1 = $ 200 X - M = $ 250 The economy is in equilibrium at a level of real GDP or income is Now suppose that the government decides to increase government spending by $100 What is the new equilibrium level O A. $ 375 of GDP or income? O B. $2,700 O A. $3,475 O C. $2,200 O B. $4,500 O D. $1,050 O C. $3, 100 O D. $2,700